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Ksenya-84 [330]
3 years ago
11

Hannah has liabilities totaling $29,750 (excluding her mortgage of $99,167). Her net worth is $42,500. What is her debt-to-equit

y ratio? (Round your answer to 2 decimals)
Business
1 answer:
Gnom [1K]3 years ago
5 0

Answer:

Debt-to-equity ratio = 0.70

Explanation:

given data

liabilities totaling = $29,750

mortgage = $99,167

net worth = $42,500

solution

we get here debt-to-equity ratio that is express as

debt-to-equity ratio = Total Debt ÷  Total Equity    ....................1

put here value and we will get

Debt-to-equity ratio  = \frac{29750}{42500}    

Debt-to-equity ratio = \frac{7}{10}  

Debt-to-equity ratio = 0.70  

 

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